O pequeno livro dos magos do mercado financeiro

by Jack D. Schwager, André Fontenelle (Translator)

An accessible look at the art of investing and how to adopt the practices of top professionals What differentiates the highly successful market practitioners--the Market Wizards--from ordinary traders? What traits do they share? What lessons can the average trader learn from those who achieved superior returns for decades while still maintaining strict risk control? Jack Schwager has spent the past 25 years interviewing the market legends in search of the answers--a quest chronicled in four prior Market Wizards volumes totaling nearly 2,000 pages.

In The Little Book of Market Wizards, Jack Schwager seeks to distill what he considers the essential lessons he learned in conducting nearly four dozen interviews with some of the world's best traders. The book delves into the mindset and processes of highly successful traders, providing insights that all traders should find helpful in improving their trading skills and results.

Each chapter focuses on a specific theme essential to market success Describes how all market participants can benefit by incorporating the related traits, behaviors, and philosophies of the Market Wizards in their own trading Filled with compelling anecdotes that bring the trading messages to life, and direct quotes from the market greats that resonate with the wisdom born of experience and skill Stepping clearly outside the narrow confines of most investment books, The Little Book of Market Wizards focuses on the value of understanding one's self within the context of successful investing.

Genres: Finance, Nonfiction, Business, Economics, Audiobook, Personal Finance, Psychology

166 pages, Kindle Edition

First published January 1, 2014

About the author

Jack Schwager is a recognized industry expert in futures and hedge funds and the author of a number of widely acclaimed financial books. He is currently the co-portfolio manager for the ADM Investor Services Diversified Strategies Fund, a portfolio of futures and FX managed accounts. Previously, Mr. Schwager was a partner in the Fortune Group, a London-based hedge fund advisory firm, which specialized in creating customized hedge fund portfolios for institutional clients. His prior experience includes 22 years as Director of Futures research for some of Wall Street’s leading firms and 10 years as the co-principal of a CTA.

Mr. Schwager has written extensively on the futures industry and great traders in all financial markets. He is perhaps best known for his best-selling series of interviews with the greatest hedge fund managers of the last two decades: Market Wizards (1989), The New Market Wizards (1992), and Stock Market Wizards (2001). The latest book in the series, Hedge Fund Market Wizards is due to be released in May 2012. Mr Schwager’s first book, A Complete Guide to the Futures Markets (1984) is considered to be one of the classic reference works in the field. He later revised and expanded this original work into the three-volume series, Schwager on Futures, consisting of Fundamental Analysis (1995), Technical Analysis (1996), and Managed Trading (1996). He is also the author of Getting Started in Technical Analysis (1999), part of John Wiley’s popular Getting Started series.

Mr. Schwager is a frequent seminar speaker and has lectured on a range of analytical topics including the characteristics of great traders, investment fallacies, hedge fund portfolios, managed accounts, technical analysis, and trading system evaluation. He holds a BA in Economics from Brooklyn College (1970) and an MA in Economics from Brown University (1971).

Reviews

[May Ling · Rating 5 out of 5]

Summary: Great book. Short. Key takeaway for me was the idea of trading style.

It's so interesting because I'm coming to a point in my trading life where I really have to remind myself, I'm good at what I'm good at and everything else is on the margin. There is so much pull to try something outside of what I know. I really have to make sure that is kept to a small portion of what I manage.

p. 47 - The note to stop trading. When it's not working, don't just pair down. Stop. Go to zero. It's fine.

p. 55 - Bluecrest. wow. 3% is what stops you out? That has to be over a month or something. That really narrows what strategies you could possibly do.

p. 87 - Don't publicize your calls. Good reminder in this day and age of reddit.

I liked that Bob Gibson talks about failure and how that actually does happen for some people from time to time. So many people only talk about their successes. It's nuts.

[Jeffrey · Rating 3 out of 5]

The Market Wizards series is a must read for anyone interested in improving their trading. The Little Book of Market Wizards is another great addition to the series by Schwager, but its more of a "best of" tour by Schwager. The chapters aren't interviews with traders, but rather summary from some of his interviews on specific themes.

If you have read all the other Market Wizards than this is a good refresher - otherwise go read the othes first.

[Aurelius · Rating 3 out of 5]

Certainly a great book for beginners, for everyone with experience in the market - not so much. I learned nothing new here. However, 3* because it was well written and well organized, and because I understand that this book was not written for me.

[Heli Künnapas · Rating 5 out of 5]

Väärt lugemine ka neile, kes börsimaailmas kaubelda ei soovi, sest jagatud õppetunnid on kasutatavad ilmselt ka muudes valdkondades.

Pikemalt kirjutan blogis: https://midaheliluges.blogspot.com/20...

[Biminator · Rating 4 out of 5]

หนังสือสรุป ข้อคิดที่ได้จากการสัมภาษณ์market wizard มาหลายสิบคน ดึงเอาข้อคิด ที่ทีร่วมกันของทุกคนมาไว้ที้นี้

[Alejandro · Rating 4 out of 5]

I have read the entire Market Wizards series and I am a big fan of some traders and their stories. This book is a great summary and contains the most important principles and lessons from the series. So, if you already read the other books, you won't find much new in this one, but I nevertheless found it an excellent and enjoyable weekend read.

[Gideon Idowu · Rating 4 out of 5]

Gives you a look-see into the psyche of successful traders. How to deal with losses, how to deal with wins, when to break the rules and when to stop trading altogether and take a step back for re-evaluation of strategy. A good source of motivation for beginner traders and experienced ones alike.

[Arthur · Rating 5 out of 5]

Livro Essencial para qualquer iniciante no mercado financeiro! A forma de apresentar as ideias principais dos capítulos e explicar o que dá pra aproveitar e aprender com eles é extremamente didática. Acredito que até quem não tem muito conhecimento sobre conseguirá ler com tranquilidade (No maximo precisará procurar alguns termos haha).

[Gaurav Neema · Rating 4 out of 5]

A book full of wisdom from top traders in the world!

[Rob Price · Rating 3 out of 5]

Useful trading reminders from the greats.

[Hal · Rating 3 out of 5]

A much scaled down version of his original Wizards of Trading book. This condensed format highlights the key themes that made these traders a success in a field of many losers. Good refresher and focus on what it takes to get it right in this demanding venture.

[Fran Contreras · Rating 5 out of 5]

Very insightful

My FX journey began almost 2 years ago. It’s been full of ups and downs, but what I’ve realized is that I’ve truly been holding myself back. I’ve got to go for it! Retirement is right around the corner.

[Derek Ludwig · Rating 4 out of 5]

1. Failure Is Not Predictive -- even great traders encounter failure (even repeated failures) so novice traders should start small as part of paying for their education; need to be persistent
2. What Is Not Important -- there is no one "true" method that works to make money in the markets. there are many, many way and you need to find the methodology that is right for you (it will be different for everybody)
3. Trading Your Own Personality -- successful traders find a methodology that fits their personality
4. The Need for an Edge -- you need to have a system and money management
5. The Importance of Hard Work -- you need to put in the time and work hard at learning how to trade
6. Good Trading Should Be Effortless -- the hard work in trading comes in the preparation, the actual process of trading, however, should be effortless
7. The Worst of Times, the Best of Times -- when you hit a losing streak, the best thing to do is to keep on reducing position size or even just stop completely; also when you are on a long winning streak, you should also look to start reducing position sizing - many times the biggest losses come immediately after a long winning streak
8. Risk Management -- don't focus on making money, focus on protecting what you have; know how you will get out before you get in
1. only allow a loss of 3% of your starting capital at the start of the year, if you hit the 3% loss then reduce your capital by 50% and if you lose another 3% then stop - but this does not apply to any gains you have during the year so you can always risk your gains + the 3%/3%
2. risk no more than 1% on any one trade (or whatever % makes sense for you)
9. Discipline -- need to stick to your rules/system
10. Independence -- you need to follow your own light, don't listen to other's opinion
11. Confidence -- need to be confident in you more than anybody else
12. Losing is Part of the Game -- have to be ok with taking a loss at some point; need to make "good" trades rather than "winning" trades, a bad trade can be a winner and a good trade can be a loser. To hell with the ego, making money is more important than trying to prove you are right
13. Patience -- the Market Wizards waits patiently, doing nothing until there is a sufficiently compelling trade opportunity. the lessons is that if conditions are not right, or the return/risk trade-off is not sufficiently favorable, don't do anything. beware of taking dubious trades born out of impatience.
14. No Loyalty - need to have flexibility to reverse a position if it isn’t working
15. Size Matters - position size should be smaller than you think - but when you have strong conviction in a trade, then you should increase your position size
16. Doing the Uncomfortable Thing - human inclination is to do the comfortable thing in trading (sell a winner to lock in profit rather than letting a winner ride; not cutting losses thinking it will come back)
17. Emotions and Trading - whenever you try to make back all of your losses at once you are most often doomed to fail - don’t be impulsive.
18. Off the Hook - if the market lets you off the hook, do not get out.
19. Love of the Endeavor - love of trading, should feel like a video game.

[Firsh · Rating 3 out of 5]

Aside from me not being the target audience (long-term investor here and by that I don't mean weeks but optimally decades, this had some problems. For example, some trading lingo was used before it was explained, which was annoying. I always smile when I see people use minute-based charts and act nerviously on price action. For me it's like watching a flippy floppy piranha out of water vs an old oak tree, where the former is the trader, the latter is the investor. I don't know what my aversion is toward traders, and I don't know if my 100 trades per year (according to my broker) is a lot or not. But most of that is just tax loss harvesting and wash sales (here it's legal lol). But when the topic ventures onto futures, options, leverage, shorting, hedging, the book loses me. I view active trading as work, as in being an entrepreneur and dealing with stuff all the time. I'm simply too lazy for that. I just want to find 1 or 2 dozen good companies I can invest in heavily, then think like an owner and sit on them as long as they are good. It supports my lazyass approach much better than the stressful active trading. Also, leverage is not in my dictionary. I expect a -50% in the market on any given day and I sleep good with it, knowing that I can get by on just 5% of my portfolio's value per year, and I never needed to make a withdrawal. So yeah I "play" with money that is not needed in the foreseeable future. But I couldn't begin to find myself using leverage to juice more out of it, as it's simply not needed. By definition, if my approach only makes 5% above inflation, I'm good forever. If it makes less, then it's still good for a few decades. So why would I risk it by more aggressive trading? Therefore most lessons given to me by the book are useless as in not applicable. Long-term investors simply have different mindsets. And there are other books better than this that even if written from a relatively tradish (is that even a word) background, are actually useful (The Art of Execution comes to mind). Well, at least it was short I guess (all of the Little Books are).

[Swati Vasishta · Rating 5 out of 5]

This book is yet another concise masterpiece in Schwager's Market Wizards series. While the book is most relatable for active traders, it can also be read as a valuable guide for being successful in a business of any kind. That's the beauty of trading -it is so fundamentally linked to who we are as humans. The consistent themes in this book shown by some of the greatest traders of our times are persistence over intensity, aligning your trading style to your personality rather than copying or taking advice, the importance of hard work, risk management, discipline, patience, the ability to do the uncomfortable things. But above all else, you need to love what you do to become successful. Great traders don't trade because its 'work' or to get rich quickly, they do so for the sheer love for the challenging process, and this moral holds good for everything in life. Overall, a wonderful read for active traders.

[Mattias Ek · Rating 4 out of 5]

If you don't have an edge - implying you have a negative edge - then the optimal money management strategy is to bet it all at once. The epitome of bad money management. Money management can not save you, if you don't have an edge. It is helpful in mitigating loses and preserving capital only if you do have an edge.

It is very important to know what you don't know. . . . Claude Debussy said 'music is the space between the notes', one can also say that successful trading is the space between the trades. Just as the notes not played are important to music, the trades not taken are important to trading success.

If you don't stay with your winners, you are not going to be able to pay for the losers.

Good traders liquidate their positions when they believe they are wrong, great traders reverse their positions when they believe they are wrong. If you wanna succeed as a trader you can't have loyalty to your positions.

[Prince · Rating 4 out of 5]

As an Audiobook 3.9/4

Overall useful concepts, there are some basics like : limit drawdowns, reduce position sizing with consecutive losses, be aware of current market conditions, adapt quickly, be patient until the right setup appears, let winners run.

- One particularly interesting lesson was the importance of always having one take profit early on the first bounce.
This kept a trader that was otherwise not so great in the game.

- Another interesting lesson was the idea that trading should feel effortless, not forced, "you have to let the arrow shoot itself, like a good Archer", whenever there is effort, force, straining, it's wrong. Good trading should be effortless. The hard work should be done in the preparation, not in the execution. The system, the process needs to be prepared for any eventuality beforehand.

[Tony WANG · Rating 4 out of 5]

This is basically a slightly longer version of summaries from all of his final chapter of Market Wizards books. Albeit slightly longer but the gists are mostly the same. But still, as mentioned in his introduction of the book, this book is not a replacement to all his previous interview books but should be use more as a supplement to those.

I would say if you haven't heard or read anything by Schwager yet (arguably one of the most prominent figure in the trading business), go ahead and read this short book first to have a glimpse about his works. I still recommend all of his Market Wizards books as well as this. Solid 4/5.

[Jairo Fraga · Rating 3 out of 5]

Mais um livro do renomado autor Jack Schwager em que, dessa vez, o autor não faz entrevistas com os traders de sucesso, e sim relembra diversos conselhos compilados deles.

Acredito que alguns conselhos que sejam mais úteis são aqueles referentes a amar o trade para poder ter algum sucesso. Se você buscar o dinheiro como a única finalidade no trade, você fracassará.

Tem os conselhos usuais de gerenciamento de risco, tamanho de posição, etc. Mas acho que poderia ter mais conselhos sobre a necessidade de ser criativo e pensar fora da caixa.

Um livro ok, acredito que o pior da série, por não trazer nada de novo.

Tempo estimado de leitura: 3h

[Katin · Rating 2 out of 5]

This book would be great... If I were into stocks. The only reason I read this was because my boyfriend wanted me to. It was good, for the parts I understood. But for the most part, I just skimmed through the whole thing. As I said, it would have been amazing if it was of my interest. Sadly, it's not.

However, I do like how it was structured. The paragraphs were small, and the "interviews" with the different people were interesting enough to read. If their advice could slightly be applicable to everyday life, I took it. IDK, it really wasn't a bad book. I was just not interested, at all.

[Michael Wu · Rating 4 out of 5]

This book is great because if you want to be trader, think if you align with these values and more importantly characteristics/personality traits. If you feel these people are crazy or think so weirdly, there's a change you may want to go into a different industry. My professor, an extremely successful hedge fund analyst gave me the same advice. He knew I was built for this when I told him the traders I was meeting we thought in such similar fashion. Anyways, these books are excellent, old school, so take everything with a grain of salt.

[Easwar. Sa · Rating 5 out of 5]

Insightful

Covers major insights that will significantly help in fine-tuning a trading strategy. Drills in the reality that inherently, loss making trades can exceed profitable trades and helps one to develop a framework that incorporates risk control strategies and maximizing profits on winning trades .
Lots of insightful quotes that are immediately actionable and performance altering (downside minimization).

[Me · Rating 1 out of 5]

I have spent years reading financial, economic and market books. It paid off and I won big.

But the market makers decided they did not want to pay. They told the DTCC not to enforce margin calls.

Don’t believe me? Read this

https://financialservices.house.gov/n...

Lesson learned? The stock market is dead due to their own corruption . All books are now invalid and meaningless

[Lukas Ldc · Rating 5 out of 5]

Au travers de 23 petits chapitres, l'auteur condense les principes les plus importants qui proviennent de ses entretiens sur les magiciens des marchés. Étayées de petites histoires, les règles sont variées et facilement appréhendables peu importe le niveau de connaissances sur le sujet. Que l'on soit débutant ou confirmé, ce petit livre est à garder à portée de main : personne n'est à l'abri d'une étourderie.

[Denny Troncoso · Rating 5 out of 5]

Great stories about trading stocks

Market wizards
Best trader was 63% winner
Buying call may be better than stop loss
Best traders weighted trades the best 1-2% of net worth
Be patient for good opportunities
Trading is boring
Be a pig if you know position will be great buy more even if your profitable
Go with trend
Market limit down cant sell
Acting impulsively

[Rodrigo · Rating 5 out of 5]

Incredible insightful

I read about this book in a newspaper article, and I bought it because it seemed fun to read during my summer break. I never expected it would be such a insightful book, I enjoyed it so much, that I just ended it in just few hours. It opened me the doors to the rest of the “Market Wizardsverse”.

[Khairul Bashar · Rating 4 out of 5]

I never would have understood without reading this book that there is so much art and passion involved in trading. The theme of the book is that to be successful as a trader you must be disciplined and you must find a trading style that suits your personality, while ignoring others.

Looking forward to reading the four masterpieces Wizards of Jack D. Schwager.

[J aime · Rating 5 out of 5]

This is just what it says, a little book of market wizards. The principles are all in this book; the foundational stuff that you learned and then forgot to use or reinforce, the simple little habits that are not always so simple to consistently use, and the names of people you respect in the investing world. This book is a quick read and a wonderful reminder of the other wizard books.

[Mihai Neagu · Rating 2 out of 5]

I don't understand most of the concepts from this book. Few key ideas: short and long positions are everything about these markets, the mistakes should be opportunities to learn, so you should afford mistakes, when you are learning you should manage small amounts of money, so if you screw it up you can pass over.

[Philip H. O'Brien · Rating 5 out of 5]

Excellent condensed summary of trading tips

If you don’t have time to read all of Schwager’s books, then this is a great condensed summary. Excellent refresh for the experienced trader too.